I don't see the slimness lowering the cost much... If they shrink the cpu, gpu, and motherboard, that would save costs. But just shrinking the motherboard and taking the power supply out would save you on plastic casing... which I am guessing is not a very big expense to them.

It's not really that hard.

It's exactly what Xen said, essentially.

The PS3 power supply is inside, so first they'd take it out, and this year (2009) sony is implementing the 45/45 Cell/RSX chips, so they'd have a smaller chipsize, also the smaller they are, the less problems you have with heating, so they'd need less and smaller fans and vents.  The majority of PS3s space and weight is the power supply, so make that external, and you lose tons of space, since it uses so much electircity to run the triple, the power supply must be as big as the 360 one. 

It's the same way that they made the PS2 slim, by taking out the power supply, and the expansion bay on the PS2, and moving some stuff around. 

It wouldn't be tons smaller, but they'd be able to shave off a good percentage of size, and definitely a good percentage of weight.

Aye. But I'd say Sony would prefer to make some profits by selling their console for a gain, nota loss. When SCE goes up in finances, the console will go down in price.

half a DS controller??? xD i know 1-2

dude you have to start thinking and stop dreaming. Eventhough that looks like a sweet bundled, i dont think its gonna happen. You are asking for too much there my friend

well sure it would but a bundle with all that in it for that price is rediculous.  they would be losing so much profit.  sure it would be great and a big seller but they would lose some serious cash

 lol, I think theres a 5% this will happen but come on, im a Sony guy, optimism and over anticipation is in my blood.

I don't think they will do it but if they do it will help...A LOT. it will be like what the DS lite did for the DS.

i predict good price cutting in march, and again before fall 09. slim they must be working on, its not as if they say oh lets make a slim 2day. its in thier development all along.

interesting article though although i beliveits false

Don't worry, i know